By Nibal Zgheib
The Smaller Businesses as well as Green Investments within the Egypt has got up huge boost with a USD$50 million loan to QNB ALAHALI-also one amongst the Egypt’s pivotal commercial Banking major.
The loan that comprises up of US$7.5Million concessional finance booster from the Green Climatic Fund, will be utilized for the on-lending for the households as well as native small and medium-sized enterprises (SME’s).
The European Union (EU) will be assisting the grants for the projects that are successfully implemented as well as verified, technical aids as well as policy dialogues. The European Union will be offering finance worth €5.128 million EU Funds to QNB ALAHLI, as well as offer a detailed technical aid bundle worth €6.2 million for altogether every participating financial establishment and their clients, as well as for a policy dialogue.
QNB ALAHLI will outspread the EBRD’s financing to private sub-borrowers, involving personal households and SMEs, functioning in the residential, agribusiness, industrial, commercial and service sectors, who are evolving green, energy efficiency, water efficiency, renewable energy and resource efficiency projects.
This will in turn encourage the utilization of high-performance technologies and services in climate-mitigation and climate-adaptation activities, and will benefit with the evolution to a greener economy. In Egypt and the southern and eastern Mediterranean region, it is the initial programme of this kind to have both a retail and a residential segment.
QNB ALAHLI is the initial bank in Egypt to take advantage from a loan under the GCF GEFF Regional Egypt Framework, the second Green Economy Financing Facility (GEFF II) in the nation. Till date, the assistance between the EBRD and QNB ALAHLI on numerous projects is valued at more than US$ 720 million altogether, and has a distinct focus on SMEs, women entrepreneurs-powered trades and green financing.
EBRD Managing Director for the southern and eastern Mediterranean, Heike Harmgart, stated: “We are very happy to roll out GEFF II in Egypt with the EU and GCF’s support to promote green investments, in line with our Green Economy Transition strategy. Through our partnership with QNB ALAHLI we have been able to support small businesses and trade and to increase finance for greener projects.”
The Chairman and Managing Director of QNB ALAHLI, Mohamed El Dib, stated: “It gives us great pleasure to cooperate with the EBRD in this remarkable transaction, which is in line with our ambitions to support Egypt’s business and social communities and its economic development, with particular emphasis on the development of the SME and retail segments, as well as the promotion of a greener economy. We look forward to further strengthening this partnership to meet our mutual objectives to serve economic, social and environmental well-being.”
Egypt is a founding member of the EBRD. Since the commencement of its operations there in 2012, the Bank has capitalized more than €7.7 billion in 132 projects in the nation. The EBRD’s ranges of investment comprises off the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects like that of the power, municipal water and wastewater services, and contributions to the upgrade of transport services.